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Connexionz
$0.32 6 July 2006
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Excerpt
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Ticker: CNX
Website: www.connexionz.co.nz
<http://www.connexionz.co.nz/>
MD: Robert Burke
Chairman: Craig Boyce
Annual meeting date: Christchurch, 7 September 2006
Shares.net.nz comment
Connexionz Ltd is one of those interesting
little companies (market cap $6.5m) that has a good
product and deserves to do well but like many small
companies needs to get to a level of critical mass that
takes away the importance of one off sales.
CNX chairman Craig Boyce has announced that the company
intends to move its focus from the UK market to the US
market in the hope of finding a more consistent order
flow.
CNX latest report shows sales falling from $2.9m to
$1.41m while expenses fell from $2.79m to $1.68m.
Connexionz Limited has won another contract in the
United States to supply its real-time bus passenger
information system, BusFinder. The system has been sold
to the University of Maryland's Department of
Transportation for $US350,000, with an on-going
maintenance contract.
BusFinder will be installed on the university's 55-bus
Shuttle UM system, along with touchscreens at 30 bus
stops. Also included are website, cell phone and
interactive voice response (IVR) access to the system,
which tells bus passengers the actual arrival time of a
bus at a bus stop.
"We are now capitalising on the underlying value of
the Arlington contract, which gave us a high profile
site with full functionality to demonstrate to
prospective buyers," said the Managing Director of
Connexionz Mr Robert Burke.
Connexionz is now confident of further BusFinder sales
in the United States," said Mr Burke.
PE comment
CNX has 17,000,000 shares on issue @ .32 giving a market
cap of $6,500,000.
We would expect CNX to trade on a pe of 10-12 although
any success in procuring a number of contracts in the
states would see considerable pe growth.
This would mean a profit of $540000 - $650,000 .
Technical comment
CNX has traded between .32 support and .44 cents
resistance on low volume since Aril 2005.The market
needs another result before the price will move out of
this range.
Company comments on its latest result
The relatively low number of public bus system tenders
advertised in the UK and Australasia during the year had
a marked affect on results for the year and because of
this, in early 2005, the company shifted its marketing
focus to the United States.
"Post 31 March, we succeeded in selling a new
system to the University of Maryland providing revenue
of approximately $NZ500,000, as well as identifying
several other potential projects," Chairman Craig
Boyce said.
"This is good news for the commencement of the
company's 2006-2007 year."
Connexionz has now sold its systems to bus system
operators in Sydney, Auckland and Christchurch;
Southampton UK; and in California, Oregon, Virginia and
Maryland USA.
Latest financial result (full year)
Audited figures for the year to March 31, 2006
(Released 15, 2006 - figures in $NZ'000)
This year
Previous
year
Change
Trading revenue
1,372
2,893
-52.6%
Other revenue
39
10
Total Operating Revenue
1,411
2,903
-51.4%
Pretax surplus/(deficit)
(269)
116
-332%
Tax
-
-
-
Net profit/(loss)
(269)
116
-332%
Earnings per share
(1.57cps)
0.68cps
-331%
Recent milestones
May 2006
Connexionz wins another contract in the United States to
supply its real-time bus passenger information system,
BusFinder. The system is sold to the University of
Maryland's Department of Transportation for $US350,000,
with an on-going maintenance contract. The company is
now confident of further BusFinder sales in the United
States, MD Robert Burke says.
November 2005
Connexionz secures a follow-up order from Arlington
Transit (ART) to install tracking equipment on the
remainder of ART's bus fleet. In 2004 Connexionz was
commissioned to provide ART passengers with real-time
information on 2 routes and 10 stops as well as schedule
adherence reporting to management. The new order will
equip the balance of the ART fleet (32 Buses) with
tracking equipment, provide a web site giving RTPI
updates for every ART stop and see an additional 40
BusFinder touch screen displays installed.
Company activities
Connexionz has designed and built a bus tracking system
that allows a bus passenger to find out how far away
their bus is, in real time. Bus passengers can access
the information from street-side touchscreen displays,
plasma and LCD displays in malls and shop windows, on
public websites, and through their cell phones. |
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